Prepare a Trial Balance

A On September 27, the bookkeeper paid a $25,000 deposit for a November 2017 meeting. She debited Accounts Payable and credited Cash. This amount had not previously been entered as an accounts payable.

B. The bookkeeper received a $5,000 refund for a meeting held in August 2017. She credited Prepaid Meetings although the only amounts in the Prepaid Meetings account were for the November 2017 meeting.

C. On August 15, 2017, the bookkeeper deposited a $3,000 check for product to be shipped in September. All the product was shipped as of September 30, 2017.

D. On January 1, 2016, the company borrowed $40,000 at a 6% annual rate. The loan is to be paid back to the bank annually on December 31st in four equal installments. The first installment was paid on December 31, 2016. Interest on the balance owed is also paid annually on December 31st. The interest for the year is expensed evenly throughout the year. (Hint: there are two adjustments to be made)

E. Income tax expense must be re-calculated after all adjustments have been recorded. The income tax rate is 35%